Tower International, Inc. (NYSE: TOWR), a leading integrated global manufacturer of engineered automotive structural metal components and assemblies, today announced first quarter 2017 results and maintained its outlook for 2017.
- Revenue for the first quarter was $497.6 million, up 2 percent from $489.2 million in the first quarter 2016.
- Net income in the first quarter was $17.3 million or $0.83 per diluted share, compared with $8.4 million or $0.39 per diluted share last year. As detailed below, this year’s first quarter included certain items which favorably impacted results by $1.4 million. Certain items in the first quarter a year ago adversely affected results by $5.6 million. Excluding these certain items in both periods, Diluted Adjusted Earnings Per Share were $0.76 for the first quarter 2017, a 17 percent increase compared with $0.65 a year ago.
- Adjusted EBITDA for the quarter was $46.2 million, compared with $45.1 million a year ago, an increase of 2 percent from last year.
- As anticipated, Free Cash Flow was significantly negative for the first quarter, representing normal seasonal patterns and significant investment in future programs.
- During the quarter, Tower amended and extended the maturity on its Term Loan by 4 years to 2024 and its Cash Flow Revolver by 3 years to 2022.
- For full year 2017, the outlook is maintained:
- Revenue of $1.925 billion;
- Adjusted EBITDA up 4 percent, to $210 million;
- Adjusted EBITDA margin increasing by 40 basis points, to 10.9 percent;
- Diluted Adjusted Earnings Per Share of $3.60, an increase of 7 percent from 2016; and
- Free Cash Flow of $55 million, driven by strong cash flow in the second half of the year.
- The Company’s outlook for second quarter 2017 includes revenue of $495 million, Adjusted EBITDA of $53 million, and Diluted Adjusted Earnings Per Share of $0.95.
“Tower delivered solid financial results in the quarter as revenue and earnings were above our previous outlook,” said CEO Jim Gouin. “We continue to invest in the growth of Tower and are well positioned to grow our business at a faster pace than the industry over the coming years. This growth will be fueled by what we believe to be secular trends associated with OEM outsourcing driven by lightweighting and changing technologies such as electrification.” Gouin continued, “Regardless of how vehicles are eventually powered or driven, Tower’s structural components and assemblies remain both relevant and necessary.”
